The price caps have been effective in depressing prices for Russian oil, but a jump in global Brent crude prices above $80 a barrel, has pulled Russian Urals above the $60 a barrel price cap, while ESPO Blend, exported from the Far East port of Kozmino, has been trading above $60 a barrel also.Įven before the price caps were imposed, there was no way for insurers to verify the value of cargoes, which can be traded multiple times before reaching their destinations. "If Russia wants to export its oil and sell it above the price of the price cap, then it's in the interests of both the Russian exporter and the receiver not to release information as to what the true price of the cargo was," Salthouse told Reuters on the sidelines of a Singapore Maritime Week event. So long as the prices do not exceed capped levels, companies involved in trading and transporting the oil can access to western financial services, ships and insurance.īut, shipping documentation can be filled with false information and it would be "very difficult for ship owners to get to the bottom what the actual price was," according to Mike Salthouse, head of external affairs from NorthStandard P&I Club. To curb Moscow's oil revenues following the Ukraine war, the Group of Seven Nations, the European Union and Australia imposed price caps on Russian crude and oil products from December and February, respectively. SINGAPORE, April 27 (Reuters) - A rise in spot prices for Russian crude oil to above the $60 per barrel cap imposed by western powers has made ship insurers even more nervous of running foul of the rules as they are unable to independently track the value of cargoes, executives said.
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